Income Taxes (Tables)

12 Months Ended

Mar. 31, 2017

Income Taxes Tables

Components of tax provision

The components of the consolidated (benefit) provision for income taxes for fiscal 2017, 2016 and 2015 consisted of the following (in thousands):

		March 31,
Current:		2017		2016		2015
Federal	$	(7)	$	97	$	92
State		588		551		457
Foreign		112		71		1
Total current tax provision		693		719		550
Deferred:
Federal		1,506		95		2,602
State		(1,095)		(854)		(363)
Foreign		(1,230)		(807)		-
Total deferred tax (benefit) provision		(819)		(1,566)		2,239
Income tax (benefit) provision	$	(126)	$	(847)	$	2,789

Schedule of tax effects of temporary differences that give rise to deferred tax assets and liabilities

Deferred tax assets and (liabilities) were comprised of the following (in thousands):

		March 31,
Current deferred tax assets		2017		2016
Net operating loss carryforwards	$	-	$	2,739
Inventory valuation		-		14
Reserves and allowances		-		2,740
Net current deferred tax assets		-		5,493
Net operating loss carryforwards		36,427		38,449
Research and development and other credit carryforwards		8,614		7,106
Stock-based compensation		6,942		5,577
Reserves and allowances		3,266		-
Fixed assets and intangibles		(3,688)		(6,160)
Net non-current deferred tax assets		51,561		44,972
Valuation allowance		(2,934)		(3,760)
Total	$	48,627	$	46,705

Reconciliation of U.S. statutory income tax rate to company's effective tax rate

A reconciliation of the Company's provision (benefit) for income taxes to the amounts computed using the statutory U.S. federal income tax rate of 34% is as follows (in thousands):

		Years Ended March 31,
		2017		2016		2015
Tax provision at statutory rate	$	(1,652)	$	(2,029)	$	1,599
State income taxes before valuation allowance,
net of federal effect		108		9		269
Foreign tax rate differential		885		(769)		-
Research and development credits		(1,484)		(1,253)		(725)
Change in valuation allowance		(287)		(1,555)		(1,480)
Compensation/option differences		(246)		(471)		(331)
Non-deductible compensation		1,079		944		746
Acquisition costs		54		230		-
Expiring CA NOLs		-		1,626		1,484
Foreign loss not benefited		780		2,342		1,192
Other		637		79		35
Total income tax provision	$	(126)	$	(847)	$	2,789

Reconciliation of beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

		Unrecognized Tax Benefits
		2017		2016		2015
Balance at beginning of year	$	2,881	$	2,420	$	2,165
Gross increase - tax positions in prior period		-		82		27
Gross decreases - tax positions in prior period		-		-		-
Gross increases - tax positions related to the current year		450		379		228
Balance at end of year	$	3,331	$	2,881	$	2,420